Performance on the pitch

Manchester United

Old Trafford felt like a happy place to be earlier in the season. Wayne Rooney was in the best scoring form of his life, Phil Jones had settled in seamlessly, Ashley Young was looking value for money and the football was thrilling. United came from two goals down to beat Manchester City in the Community Shield and racked up 21 goals in their first five league fixtures. But then the fun stopped. City walloped them 6-1 at Old Trafford, Sir Alex Ferguson felt compelled to apologise after Crystal Palace humbled them in the Carling Cup and it did not really need Patrice Evra to explain that being demoted into the Europa League is an embarrassment for a club of United's ambition.

Manchester City

Jens Lehmann believes Roberto Mancini's team have been "very, very boring," which makes you wonder how much he has seen of them this season. Let's guess very little. Forty-eight goals in their first 14 league fixtures represents the best figure in a top-flight season. Or to put it another way, they have scored more than they managed in total in six of their previous 10 Premier League campaigns. Sergio Agüero, Mario Balotelli and Edin Dzeko are all in double figures, while David Silva looks a good bet for player of the year. Being knocked out of the Champions League was a blow, but the disappointment subsides when you can enjoy the view from the top of the table.

The managers

Manchester United

Sir Alex Ferguson has shown many times that he is perfectly equipped to handle the difficult times. He can also cite the fact that, results-wise, this has been one of their most productive starts to a season under him. Right now, however, this is one of those rare moments when it looks like all his managerial nous and experience might not be enough to prevent what is happening on his own doorstep. The people who know him best say he has still not got the 6-1 defeat to City out of his system and, by his own admission, the club he once derided as "all talk" now represent one of the greatest challenges of his 25 years in charge.

Manchester City

Nobody questions the decision to replace Mark Hughes any longer. Roberto Mancini has created a side that is threatening to dominate English football. They are playing exhilarating football and, in the process, he has confounded those who believed that the team would struggle to replace Carlos Tevez. City's demotion to the Europa League counts against him but the men in power have made it clear the Premier League is this season's priority. Mancini is also working from a position of strength now that Garry Cook, a chief executive with whom he repeatedly clashed, is no longer at the club.

Depth of squad

Manchester United

Phil Jones and Chris Smalling have proved they can be capable deputies for Nemanja Vidic but there is no getting away from the fact that losing the captain to ruptured cruciate ligaments is a devastating blow to their title chances. Another six players have been ruled out until the new year and, though Ferguson has a considerable squad, the Crystal Palace defeat demonstrated that Federico Macheda, Mame Biram Diouf and Darron Gibson are a long way off the required grade.

Manchester City

One of the myths about City is that Roberto Mancini has surrounded himself with an extravagantly bloated squad. The truth is something different. Carlos Tevez's absence leaves them with three strikers, compared with United's seven, and Kolo Touré's departure for the African Cup of Nations means Mancini has three centre-halves, one being the 20-year-old Stefan Savic. So far City have been fortunate with injuries, certainly more so than United, but there is still the possibility for serious disruption if that were to change.

Ambition off the field

Manchester United

This is where United have the clear advantage, already established as a global product and now tapping into the Indian market to go with their growing base in the US and south-east Asia. United have spent £8m buying up land around Old Trafford for future development, and have discussed enlarging the South Stand to increase Old Trafford's position as the biggest club stadium in the country. The team return to the Far East next summer for another promotional tour.

Manchester City

Plans are already being drawn up to enlarge the stadium to 60,000 seats and that will accelerate now it has become clear the club can regularly sell out at the current 48,000 capacity. A decision will be made on 22 December about their application to redevelop a vast area around Eastlands, creating a new training ground, a 7,000-seat mini-stadium, office blocks and 15 practice pitches. They are following United into the American and Asian markets and we can dismiss what the Napoli president, Aurelio De Laurentiis, said as wishful thinking – all the evidence points to Sheikh Mansour and the Abu Dhabi United Group being here for the long term.

Ambition on the field

Manchester United

The Glazer family are so reclusive it is difficult to be certain what money, if any, is available to Ferguson for January signings. David de Gea, Ashley Young and Phil Jones arrived for a combined £50m last summer but the consensus is that the team still need one, or maybe two, central midfielders. Ferguson tried, and failed, to bring in Wesley Sneijder and Samir Nasri in the summer. Now he says he has "nothing in mind". Others at Old Trafford talk of "Glazernomics" and believe there is reluctance at the highest end of the club to spend any more.

Manchester City

The first three years of Abu Dhabi ownership have brought such unprecedented spending that it has been difficult for City to convince everyone they no longer operate by the same money-no-object mentality now they have to concern themselves with Uefa's financial fair play guidelines. City will remain in the market for the best players but, with annual losses of £197m, transfer targets may find the days are gone when the club would nonchalantly sign off any salary demands. Thiago Silva, the Milan defender, has been ruled out of because of expense. Roma's Daniele de Rossi (right) may go the same way. It could be a quiet January.